EAST TEXAS DRILLING REPORT
DEVELOPMENTAL

Gregg County

In a lease 1.6 miles southeast from Longview, in a Wildcat Field, the Bivins Heirs Well No.1 will be drilled to a depth of 12,000-feet by Buffco Production, Inc. This well will lie in the Jordan, A Survey, A-262 and may also be drilled in the Willow Springs (Varga T.P) Field, the Willow Springs (Pettit, Upper) Field, the Willow Springs (Pettit, Lower) Field or the Willow Springs (Cotton Valley) Field.

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Rusk County

The Goodwin Well No.2 will be drilled 2.43 miles northwest from Minden in the Brachfield, Southeast (Cotton Valley) Field. This well will be drilled to a depth of 12,000- feet by Fidelity Exploration & Production Co. This well will lie in the Roberts, J Survey, A- 682.

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In a lease 1.66 miles southeast from Minden in a Wildcat Field,t he Tipps Gas Unit Well No.8 will be drilled by Cabot Oil & Gas Corp. This well will bottom at 12,000-feet in the Vansickle, B A Survey, A-796. The well may also be drilled in the Brachfield, Southeast (Cotton Valley) Field.

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Sandridge Onshore, LLC will drill the Powell Gas Unit 1 Well No.13 to a depth of 12,000-feet in a Wildcat Field. This well will be located 4.5 miles southeast from Henderson in the Jackson, T J Survey, A-15. The well may also be drilled in the Minden (Cotton Valley Consolidated) Field or the Minden (Travis Peak Consolidated) Field.

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Enduring Resources, LLC will drill the Baxter Well No.1 and the Jarrell Gas Unit Well No.2 in the Brachfield, Southeast (Cotton Valley) Field. The No.1 will be located 1.8 miles south from Minden in the Rutland, J S Survey, A-659. The No.2 will be located 3.1 miles northwest from Minden in the Birdwell, G Survey, A-108. Both wells will bottom at 11,300-feet and may also be drilled in the Minden (Travis Peak Consolidated) Field or a Wildcat Field.

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The Kangerga Gas Unit No.1 Well No.12, the Harrell Gas Unit No.2 Well No.14 and the Fahle Well No.14 will be drilled in the Brachfield, Southeast (Cotton Valley) Field by Fidelity Exploration & Productionj Co. to a dpeht of 12,000-feet. The Kangerga Gas Unit No.1 Well No.12 will be located 2.99 miles northeast from Minden in the Lane, E C Survey, A-490. The Harrell Gas Unit No.2 Well No.14 will be located 2.17 miles northeast from Minden in the Moore, J Survey, A-523. The Fahle Well No.14 will be located 4.18 miles northeast from Minden in the Orrick, W Survey, A- 613.

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Smith County

The Berry Well No.1 will be located two miles northeast from Noonday in the Noonday (Travis Peak) Field. This well will be drilled to a depth of 17,000-feet in the Quevedo, T Survey, A-18 by Valence Operating Co. This well may also be drilled in the Noonday (Rodessa) Field.

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Goldston Oil Corp. will drill the McFarland, Eddie Well No.1 in a Wildcat Field. This well will be located 0.38 miles northeast from Sand Flat in the Smith, S Survey, A-899. Total depth will be 12,000- feet.

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Gregg County

The Burford & Blow G.U. 3 Well No.16 is located 10.9 miles southeast from Longview in the Oak Hill Field. Anadarko E & P Company LP drilled the well to a depth of 10,634-feet. When gauged on an adjustable choke, the well potentialed 1.027 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 24/64- inch choke, the A.J. Tuttle G.U. Well No.5 potentialed 487,000 cubic feet of natural gas. The well is located four miles northwest from Longview in the Willow Springs Field. J-W Operating Co. drilled the well to a depth of 10,970-feet. Production is in the Cotton Valley formation.

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Samson Lone Star, LLC has completed the Flanagan Well No.10 in the Danville Field. This well is located four miles east of Kilgore with a depth of 10,874-feet. This well potentialed 2.307 million cubic feet of gas when gauged on a 17/64-inch choke. Production is in the Travis Peak- Cotton Valley Consolidated formation.

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Panola County

The Ingram 2 Unit Well No.11 is located 7.1 miles southeast from Carthage in the Carthage Field. This well was completed to a depth of 9,419- feet by ConocoPhillips Co. This well was gauged on a 22/64-inch choke and potentialed 1.365 million cubic feet of gas. Production is in the Cotton Valley formation.

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